US consumer prices rose 2.7% annually in December, closing out a year that saw slight progress on inflation but continued affordability concerns for many Americans.

After a holiday season shaped by aggressive discounts, delayed data and lingering sticker shock, the next inflation report is poised to cut through the haze around what prices are really doing. The latest readings on consumer prices will show whether the apparent cooling in late 2025 was a durable shift or a temporary gift

Prices rose 2.7% in December from a year ago, a sign that inflation continues rising but in line with the pace seen in recent months.

As Trump finishes the first year of his second term — having won the presidency on a pledge to " get the prices down " — the picture on inflation is more nuanced than he or his critics acknowledge. Year-over-year inflation is down from January 2025 — but only slightly, from 3.0% to 2.7%.

Inflation is finally back in a range that looks familiar, and markets are celebrating as if the long war on rising prices is over. Stocks are climbing, bond yields are slipping and traders are rushing to price in interest rate cuts. Yet buried in the ...

Prices for goods in both categories rose by more than 15% in December as food costs moved ahead at a quicker pace than the month before.

Inflation in metro Phoenix fell below the national rate in December as housing costs cooled, but groceries, energy and health care stayed high.